american airlines on Thursday it posted a profit of $19 million for the final three months of 2023, beating Wall Street estimates in terms of revenue and profits.
The company's shares rose more than 10% on Thursday.
Here's how American performed in the fourth quarter of 2023 compared to Wall Street estimates compiled by LSEG, formerly known as Refinitiv:
- Earnings per share: Adjusted 29 cents vs. expected 10 cents.
- Revenue: $13.06 billion versus the expected $13.02 billion.
For the final three months of 2023, American Airlines reported net income of $19 million, down nearly 98% from $803 million a year earlier. Earnings per share decreased to 3 cents from $1.14 in the fourth quarter of 2022.
Adjusting for extraordinary items, including the impact of a new labor agreement with the airline's pilots, American earned 29 cents per share.
In its third-quarter earnings report, the airline had estimated that it would break even in the December period.
American Airlines stock price
“We're very pleased with the results, we closed the year strong,” CEO Robert Isom told CNBC's Phil LeBeau on Thursday. “At American, we're focused on reliability, profitability and really strengthening our balance sheet. We've done all of that… I think we're going to have a very busy first and second quarter, and I think the time to buy is now for traveling. It's going to be a very busy year.”
Looking ahead, American said it expects a net loss per share of between 15 cents and 35 cents, adjusted, for the first quarter of 2024. Costs, excluding fuel, are projected to rise between 2% and 4%. during the period, and flight capacity increased between 6.5% and 8.5%.
Boeing 787-9 Dreamliner, of the American Airlines company, taking off from Barcelona Airport, in Barcelona, on February 24, 2023.
JanValls | Nurfoto | fake images
For full year 2024, American expects adjusted earnings per share of $2.25 to $3.25 with mid-single-digit flight capacity through 2023.
In a letter to U.S. team members, Isom said the strength of the business meant all U.S. and Canada-based employees will receive a profit-sharing payment in March.
The earnings report comes on a busy day for the airline industry, with South west and Alaska also reported fourth-quarter earnings on Thursday. united airlines on Monday it posted better-than-expected earnings and revenue and a sunny 2024 forecast.
Carriers have been experiencing challenging winter weather in the first weeks of January, but American said it achieved its best on-time departures ever during the December holidays.
The eyes of the industry have been on boeing 737 Max 9 lately after that plane model was grounded by the Federal Aviation Administration earlier this month following an Alaska Airlines mid-flight incident.
American doesn't have any of those planes in its fleet, but it does have the more common 737 Max 8, and 20 more are planned for this year, according to Isom. However, late Wednesday, the FAA said it would halt Boeing's ability to increase production of the 737 Max, which could impact future plane deliveries.
“Boeing needs to get its act together. The issues they have been facing over the last period of time, but also going back several years, are unacceptable,” CEO Isom said on an earnings conference call Thursday.
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